Richard Blair runs Wealth Solutions. Among his duties is to provide people with solid advice on how to preserve their capital. There are quite a few ways to make money and save it. AirBNB presents an intriguing offer to make money the easy way. In a thoughtful article, Richard Blair has a few warnings for those who are thinking about taking advantage of AirBNB’s services. While the deal seems good, the outcome may be a total disaster. http://hackronym.com/category/financial-advice/
The way AirBNB works is pretty simple. If you have a room or even just a couch in your home or apartment, AirBNB handles the booking of the accommodations through an online platform. Homeowners could rent to three or four people a night and make a lot of money. Or so they think. There are serious considerations to think about when renting via AirBNB.
Risk is always going to be present to one degree or another when renting out rooms. With AirBNB, the renters are looking for an alternative to a motel room. They have no interest in long-term commitments to the property. As such, they could cause damage and refuse to pay. Also, bringing in a cavalcade of different people in and out of a home opens the door to consistent risk. Remember, the homeowner may end up being liable for any injuries caused by the guests. This leads to the next issue of concern.
A homeowner’s insurance policy may not cover liabilities related to AirBNB rentals. The policy currently in place could contain language that clearly excludes coverage on renters. This is an extremely serious matter because all of one’s personal safety net could be destroyed. Bankruptcy may be in the future of the AirBNB landlord.
AirBNB does have a protection system in place, but do not rely on it. The protection may be woefully inadequate in major situations.
Following the advice of Richard Blair and being leery about AirBNB as a way to make money might be the best strategy. Richard Blair is a registered business advisor, which means his professional duty is to give reliable financial advice. If he is raising red flags about AirBNB, then maybe the “make money easy” strategy is not so easy.